LONDON, Nov 22 (Reuters) - British businesses' lack of confidence in banks since the financial crisis is holding back economic recovery, the Bank of England's chief economist Spencer Dale said on Friday.
In an interview with BBC local radio in Merseyside, northwest England, Dale said many firms felt unable to rely on banks after they were unable to access credit in the 2008-09 financial crisis.
'They are less willing to expose themselves to banks. They prefer instead to hoard levels of cash and insure themselves. That is one of the factors that is holding back our recovery,' Dale said.
Despite this, Britain's economy had turned a corner and was now recovering from the financial crisis, Dale said. He also reiterated that the central bank would not raise interest rates until the economy was back to full strength.
(Reporting by David Milliken, editing by Elizabeth Piper) Keywords: BRITAIN BOE/DALE
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